CIBIL aims to bring in more transparency to the loan approval process in the country, in that customer now have an understanding of the seminal factors which lenders analyze to gauge creditworthiness. CIBIL reports, generated on a monthly basis (as mandated by the RBI), help lenders evaluate and approve or reject loan applications, as the case may be. However, there are several myths associated with CIBIL which need to be busted.
Some of the common myths associated with CIBIL are the following:
- CIBIL maintains a record of defaulters
- Being a co-borrower has no impact on my credit score
- CIBIL is meant to support banks and financial institutions only
- CIBIL is fully authorized to make corrections in individuals’ credit report
- Credit score will be excellent if I do not have any credit cards or loans
- Low CIBIL scores damage one’s credit standing for keeps
- CIBIL scores are affected by assets/investments
- CIBIL scores are the only determining factor for evaluating loan application
- The negative accounts on my CIBIL report purge after 7 years and have no impact on my credit score
- Applying for loans left, right and centre is bad for your credit score
- Paying in cash for my purchases (rather than using my credit card) will help me build my credit score
- Zero credit is ideal
What Credit Score do I need to get a Personal Loan?
The range of CIBIL Score is 300–900, usually Credit Score above 700 are considered to be good. But less than 700 score doesn’t mean you have a bad Score, it is an average Score. More importantly, you can get loans from many NBFCs and Banks with this score.
Free Credit Score
Credit Score is a three-digit number range from 300-900 that relates to how likely you are to repay debt. Banks and lenders use it to decide whether they’ll approve you for a credit card or loan. But that might be too late as the person’s loan application would have already been rejected and he would be left on to a loan path to rebuilding or improving his CIBIL score.
Credit Score Repair – Boost Your Credit Score FAST in 2021
Credit score is a three-digit numeric number found in the Credit Information Report and it plays an integral role in initiating the loan application process. The lower the score, the more trouble you may face. In case, you have bad credit history, it is necessary to follow certain measures to fix the issue.
Bad Credit Score – Side effects
The score is given based on your loan or credit card repayment track of at least 6 months to a year. Any score of 750 or above is considered a good one while a credit score below 600 is considered bad by lenders. When you have a good credit score, it brings a range of benefits such as lower interest rates, higher borrowing or credit limit, quick disbursal, etc.
How to raise my credit score towards 750
Bad Credit Score can be improved/ rebuild even without Credit Cards. Primarily you need to repair your credit history before you see your Credit Score improvement.
What Credit Score do I need to get a Personal Loan
You can get loans from many NBFCs and Banks with this score. But note that you can work towards improving your score above 700 .Your credit score plays a key role when you apply for a loan. The following ways will help you in understanding your Credit Score:-
5 Things lenders check beside your Credit Score
Credit Score isn’t the only thing that could make or break your ability to get a loan or line of credit. Many lenders – mortgage lenders, especially – will also calculate a potential borrower’s debt-to-income ratio to determine whether they’re suited to take on another monthly payment.